tv Street Signs CNBC August 18, 2017 4:00am-5:00am EDT
welcome to "street signs." i'm carolin roth these are your headlines >> terror in spain sends jitters through the markets. travel and leisure stocks are bearing the brunt of the losses. police kill five terrorists in the coastal town of cambrils in connection with the terror attacks in barcelona security forces continue the hunt for the van driver who killed 13 and injured more than
100 people on the tourist avenue las ramblas. good morning on this very sad friday let's keep you up to date with the latest coming out of spain counter tr rerror forces are investigating multiple attacks around barcelona six civilians and one police officer were hurt in cambrils. attackers ran them over in a car before police shot dead five suspects in the northeastern spanish city police say it was related to the earlier attack in barcelona and that the five attackers were wearing fake explosive belts when they were killed. in barcelona police arrested a third man in connect shun with a terrorist attack that killed 13 people and injured over 100 many of them seriously a van crashed into pedestrians in las ramblas
the driver of the van sped through approximately 500 meters of a wide walkway in one of the busiest tourist destinations in the city isis claimed responsibility for the attack, but produced no evidence to support the claim. and there appeared to have been further attacks in the works. police in alcanar say an explosion in a home there happened as people were making bombs. one person died, six more were injured in the blast the explosive workshop outside of barcelona was connected to the attacks elsewhere in spain the spanish prime minister offered his condolences to the victims and their families he said police would reinforce security >> translator: i want to express the solidarity of the whole of spain to the city of barcelona today hit by jihadi terrorism. in places like madrid, nice,
brussels, berlin or london have experienced the same horror and uncertainty that today the people of barcelona have suffered i want to take you to the markets and draw your attention to the travel and leisure sector that's the worst performing sector airlines are bearing the brunt of the losses. ing off by 2.5%. akor falling by 1.6% easyjet down by 2.3% barcelona is one of the most popular tourist destinations in europe it's the height of the tourism season, the summer traveling season in europe want to get more analysis on the latest tr ro efst terror attackn appreciate you taking the time out of your holiday. i'm afraid to say i think the answer to my question is no. my question is can this be
prevented? these low cost attacks with a van mowing down people >> no, i don't think so. but this case is much more different than others. it looks like the attack in barcelona may have been a plan "b," because police and security services were on to that large cell the explosion that you mentioned that happened the day before was probably looking at the canisters to possibly make a car bomb and the fact that there were other people involved as well, makes it much more closer to the attacks in paris and brussels especially brussels when the terrorists were thinking that the police were closing in on them and they had to change targets and go quickly to target the airport and subway
for me it's totally different than nice and berlin, it's a much more sophisticated plot involving many people. it's extremely serious and extremely concerning >> what do you think plan "a" would have been? do you think the location would have been an airport do we have anymore information about what the targeted location could have been? >> not really. the islamic state has called for car bombs with gas canisters that's one of the plots that we saw in france against the notre dame church that fortunately didn't go through. most probably what's interesting is that the driver of the van fled he didn't want to become a martyr so that is also significant and that would fit into the
suggestion that they were thinking about putting a car bomb and living, rather than dying on the scene >> how organized do you think the terrorists were? how loosely do you think they before were to isis what do we know about the ties >> we have not seen in spain compared to other countryies really people coming back, it's usually homegrown, moroccans or spanish citizens of moroccan origin the spanish security services have been extremely efficient with the moroccan services to foil attacks and dismantle terror cells looking at the numbers, even though spain is not in the news headline concerning counterterroism, for some of us
that follow watts going on in spain, they've been extremely active in terms of dismantling cells and spain is, i would say, number two in terms of arresting jihadists in europe after france >> it's kind of counter intuitive because spain is not fighting isis in syria and iraq, they have soldiers there, but just training other people they're not combating isis fighters on the ground do you think that spain was going to be a prime target for jihadists in the first place >> yes, very much so spain has been, for instance, for al qaeda, a tier 1 country it's a top target for historical reasons. jihadists consider that spain is a muslim land that needs to be retaken. for me, it was not a surprise.
spain, if you will, is at the top of the food chain, it has nothing to do with foreign policy but for historical reasons they have tried to target spain >> olivier, thank you very much. olivier guitta let's take you back to the markets. what we're seeing across the european markets is a certain sense of risk aversion people taking risk off the table, given the risks in barcelona but also the increasing worries about trump's reform plans and what cannot be pushed through by him given the chaos raining in the white house. the stoxx 600 is off by 0.8% that comes off three days of gains this week, though we were down 0.7% in yesterday's training session let's look at the the cac c40 is off more than 1% the spanish index is suffers
quite a bit as well given the latest terrorist attacks there when it comes to the sectors, as i said before, it's the travel and leisure sector bearing the brunt of the losses, down by 1.3% many of the airlines, banks, chemicals, also underperforming. no sector in the green today oil and gas holding up relatively well, off by 0.2% let's step away from spain for a moment and talk about more mundane things like the ecb. ecb bank policymakers are wary of the euro rising excessively fast and disrupting favorable financial conditions brought about easing monetary conditions investors pointed to a bounce in the euro as a threat to the ecb's 2% inflation target. will hamlin joins me around the desk there is not a whole lot that
the ecb can do about the strength of the euro it is on track with tapering and tightening, that's going to come at some point next year. can it only do verbal intervention now when it comes to the euro? >> it can do verbal intervention it can -- mario draghi is a master of this kind of manipulating the markets by telling people, you know what they want to hear. like all good central bankers are. markets do hang on to every word he says, every movement of his eyebrow gets interpreted in a particular way so we can do that. but there are limits to that and i do think that, you know, the more the euro goes up, the lower the inflation expectations in the eurozone will be. and in a way that will do its own work >> we saw a bit of profit taking in the euro/dollar pair
yesterday. that was on the back of the ecb minutes. ecb members somewhat concerned about an overshoot in the euro that did not necessarily help european equities. do you think there's strong inverse relationship between equities and the euro? is it not as strong as we make it out to be >> i don't think it's as strong as people make it out, but the euro will affect the profitability of certain european companies that have a large amount of earnings overseas you saw that in the qt. >> you still say the biggest risks to european markets is european tapering, and the taper tantrum. if it comes. maybe it wonl even come. we saw that in july after the comments by mario draghi do you think that will happen once the meeting happens in
jackson hole >> i don't know. the bears might say it will be the u.s., but if you look at that, what felt like a big move at the time is now just a pure blip on an upward trend. i suspect yes, there will be some days when the markets are down because of tapering i don't think that's really knocking the -- knocks the locomotive of money coming into european equity markets. >> overall you still like european equity markets more than u.s. equity markets >> yes i think european equities are much cheaper still than the u.s. equities, notwithstanding the big moves we have had in the euro and moves we have had year to date, but they lagged on a much longer time period. profit margins are still not high, they're at historical average, which is not the case in the u.s and we see a lot of value there.
>> you see value in a couple of individual stocks. let's kick off with one of them. novo nordisk yesterday the stock had the best session in 2 1/2 years on the back of a diabetes drug which succeeded in a key late stage trial. eli lilly was down as a result i guess this is one of your topics despite the news yesterday. >> my compliance officer watches this program, i'm not officially allowed to give investment recommendations, i can talk around what i think is interesting. >> okay. >> you know, novo, the case for novo, it's a high quality company. there are a lot of structural growth drivers in that you have a lot of bad habits around the world which is causing a diabetes epidemic which gives massive tailwind to the growth and it is a company that doesn't report the earnings about the bad stuff, what you see is what
you get. and it hit an air pocket a couple years ago, which allows i think, longer-term investors that really like the company but didn't like the valuation to get back involved. and now you're seeing better earnings, and you're seeing better data that will help them sell drugs again >> another sector that you like, but not necessarily recommend, i just want to keep your compliance officer happy, is banks in the eurozone, intesa, et cetera, is this still the european debt crisis >> it's partly that, but also a realization that, yes, there is still a lot of banks in the eurozone that need more capital. these are the tier 3 banks the tier 1 banks have enough
capital. there's a realization that i think in european policy making circles now that you want to resolve banking crisis, you need profitable banks you need equity holders that own these banks that are getting an attractive return on equity from those banks. in order to put their money in their pocket when things go wrong. if you have a cooperative-owned bank or a bank capitalized by some ambiguous piece of paper sold to retail investors that don't have a clue, you won't be able to deal with those banks when things go wrong >> will, thank you very much for your time. we have to leave it there. will hamlyn senior investment analyst. next after the short break, we will be joined live from
xfinity. the future of awesome. ab ongoing operation is underway in spain as police investigate attacks in barcelona. claudio lava flshgs ga hnga hast >> reporter: there's a bit of an update here. the catalan police have said they have found out that the suicide -- apparent suicide vests what looked like explosive belts that five terrorists that carried out a second attack in the town of cambrils, about 100 miles south of barcelona last
night were fake. that is a bit of positive news, if you can call it that, amidst the tragedy. that means that though this group seemed to have been organized, even though there is no real confirmation of the connection between the two attacks yesterday, authorities belive there is a link the fact there were no explosives involved means that the group was organized in the sense that they carried out an attack by using vans to plow into a crowd of people here. they injured six people, one is critical but the lack of that explosive, the fact they were not wearing explosive belts, that means the organization was, of course -- they did not access explosives that would have meant that they
could have posed even more danger today as in the future. so this is a bit of a positive news in about an hour from now, at 12:00 there will be a minute of silence held here on las ramblas. the prime minister will attend as well as many of the people around me. this is less than 24 hours ago, this is the stage of one of the worst terrorist attacks carried out on spanish soil. look at it today, it's gone back to normal. a lot of people just walking around both spanish residents and tourists alike they are buying newspapers on most newspapers you will see something like this, this is one of the big news tapes here in spain that says united against
terrorism. >> i spoke to a counterterroism analyst a few minutes ago. he told me that spain already has a very good track record when it comes to tracking down terrorists there's been many arrests made so far this year when it comes it counter terrorism, security how much more with the spanish authorities do >> what they're concentrating on now is finding the drive their plowed into a crowd killing 13 people here. he's still on the run. that's the main worry for the authorities and the people around here alike. they were pretty effective yesterday on both occasions. of course we are talking about a van just driving into a promenade like this, with no
notice it's almost impossible to stop it, but they were quick in arresting two people in connection to the attack here in barcelona. they were quick in killing and shooting dead the five attackers that attempted a similar copycat attack in the town of -- in the town of camcambrils. they arrested another man in connection with the attack they seem to be effective, but one skipped through the net and the guy is the actual perpetrator of the attack here in barcelona the driver of the van >> shares in wienerberger are trading near the top of the stoxx 600 after the ceo of the brickmaker clarified comments which sent the stock more than 10% lower in yesterday's trading session. speaking to us earlier, he explained that he had not warned
about the outlook for the reside reside residential market >> i said there are risk outs there with ongoing brexit negotiations i said there are stability indications. i just highlighted the facts we see actually a very good underlying trade this year and the housing market is strong so if the right things happen, meaning the negotiations go well, and the uk golf. does the right things, i don't see any problems in the uk residential housing market walmart shares posted disappointing second quarter results. the group saw a rise in sales boosted by strong online and grocery demands. walmart upped investments to drive online sales and improve stores if an effort to compete with amazon. courtney reagan has the details.
>> reporter: it is steady as she goes for the world's largest retailer walmart putting up another solid quarter nearly across the board leading the discounter to raise profit expectations for the year in the most recent quarter profits were capped because of investments in e-commerce, lower prices for shoppers. the investments seem to be working. >> their improvement, the way the stores look, the assortments in the food area, the quality, the service, the friendliness, i tell you something, dramatically different than a year ago. and that was better than the year before that >> walmart has reported a string of sales gains, marking 12 straight quarters of growth. u.s. store traffic also continues to improve and analysts think profit margins may try to grow again soon >> in a world where amazon seems to be taking over, if you can have a player like walmart not only accelerate sales but also increase margins, this will be a pretty good story.
>> still a much smaller part of the business, walmart's u.s. online sales grew 60% from last year, just slightly below last quarter's growth walmart says the sales strength in the quarter was broad-based, but it did call out grocery, noting the best performance in five years since food is more than half of the discounter's sales, most analysts agree, it's the most important category for growth. and a big focus for walmart. the discounter's online grocery with parking lot pickup has been well received and will be in more than 1,000 stores by year-end an important opportunity, especially as competitors add stores. coming up, volatility spices markets worry that a key trump adviser is preparing to jump ship we'll have plenty more on that in a few minutes
welcome back to "street signs. i'm carolin roth these are your headlines terror in spain sends jitters in the market as european equity open lower and travel and leisure stocks suffer the worst of the losses. police kill five terrorists wearing fake suicide belts in the coastal town of cambrils in a shootout connected to an attack in barcelona.
police make thre arrests in connection with the attacks as security forces continue the hunt for the van driver who killed 13 and injured more than 100 people on the tourist avenue las ramblas good morning if you're just tuning in, let's flesh out the headlines for you. counterterroism forces in spain are investigating multiple attacks in and around barcelona and working to uncover other possible plots in the latest incident, six civilians and one police officer were hurt in cambrils. five are hospitalized. attackers ran them over in a car before police shot dead five suspects in the northeastern spanish city police say it was related to the earlier attack in barcelona, and that the five attackers were wearing fake explosive belts when they were killed. in barcelona, police have
arrested a third man in connection with a ter resrorist attack that killed 13 and injured 100, many of them seriously when a van crashed into pedestrians on las ramblas. the driver of the van sped through 500 meters of a wide walkway in one of the busiest tourist destinations in the city isis claimed responsibility for the attack but produced no evidence to support that claim richard engel has the latest >> reporter: screams and panic tonight on barcelona's most famous pedestrian street >> they are shooting they are shooting. >> an american tourist from los angeles recorded as she ran for her life >> we heard what sounded like gunshots, and we saw hundreds of people rushing toward us. >> come on, come on, come on >> they were running from a van
that plowed in to crowds on the street police responded quickly, evacuating nearby buildings and shutting down the neighborhood. >> we heard a lot of noise and people screaming, so like everyone was running away. >> witness captured the aftermath. we blurred some of the issues. they were too horrific bodies strewn on the sidewalk. many of them young authorities call it terrorism, and a manhunt is on for the driver isis is claiming responsibility saying it was carried out by one of its soldiers but offered no evidence >> the use of vehicles is the low-tech high impact option for terrorists it's demonstrated value in jihadi circles >> reporter: spanish
investigators say there was an explosion in a house in spain yesterday. officials say that house may have been a bomb factory so what happened today doesn't look like the work of a lone actor with a van. richard engel, nbc news, london. president trump denounced the events in barcelona as he faced pressure from within his own party after comments made after the charlottesville violence >> reporter: within three hours of the attack in barcelona, president trump condemned it as terror tweeting the u.s. will do whatever necessary to help, be tough and strong we love you. then as an example of how to get tough on what he called radical islamic terror, he cited a debunked anti-muslim myth.
that many muslims find inflammatory general john pershing cracking down on unrest in the philippines a century ago, something that set off a firestorm when he first said it on the campaign trail. >> and he took the 50 terrorists, and he took 50 men and he dipped 50 bullets in pig's blood. you heard that, right? >> reporter: the islamic faith prohibits pork as the president's reference to that inflammatory story becomes part of his quick response to an attack overseas. here at home his response to the domestic attack in charlottesville is still generating fallout as the president now laments the removal of confederate monuments. quote, sad to see the history and culture of our great country being ripped apart, adding, you can't change history, but you can learn from it. robert e. lee, stonewall jackson, who is next, washington, jefferson? so foolish. >> i think there's blame on both sides. >> reporter: the country's only republican african-american senator interviewed by vice news about the president's performance this week. >> what we want to see from our president is clarity and moral authority and that moral authority is compromised when tuesday happens. >> reporter: and another republican senator, who
campaigned for the president, now excoriating him. >> the president has not yet -- has not yet been able to demonstrate the stability nor some of the competence that he needs to demonstrate in order to be successful. and we need for him to be successful >> reporter: the commander in chief also countered by the leaders of five military branches, who sent a strong signal without mentioning the president by name by publicly condemning extremist elements. >> they were simply emphasizing on the battlefield we're one team and that's the way we stay >> reporter: but someone who does seem buoyed by this culture controversy, steve bannon, viewing it as a fight the president will win, as he told "the new york times. quote, the race identity politics of the left wants to say it's all racist. just give me more. tear down more statues say the revolution is coming i can't get enough of it there are concerns that gary
cohn could be the next to leave the white house. he is seen as a moderate voice friendly to business interests and an advocate for tax reform reports th reports that cohn may leave weighed on stocks yesterday. let's take you back to the markets in europe. we are under pressure, as you would expect with the fallout from the terrorist attacks in spain. but also the continuing question marks over donald trump's economic reform agenda the xetra dax is down by 0.9%. the ftse 100 falling hard, off by 1%. this is after we saw threegains week when it comes to the sectors, no surprise that the travel and leisure sector is bearing the brunt of the losses given the latest terrorist attacks when it comes to the fx markets, this is the picture. the euro is climbing back some of yesterday's losses against the dollar 117.38 we are up by 0.1%.
i should tell you we are poised for the first weekly draw for the euro since early july, we're on track for 0.7% drop maybe some profit takes after yesterday's ecb minutes where policy members seemed concerned about a potentialover sho overs the dollar risk aversion playing out with flows into the yen when it comes to u.s. futures, somewhat mixed. the s&p 500 seen off by less than 1 point the dow jones seen off by 5 points the nasdaq seen off by 2.5 points, this after the dow posted its biggest one-day fall yesterday. once again concerns about the trump agenda what also happened in yesterday's trading session was the fact that volatility jumped amid concerns of the president's agenda, the terror attacks in spain and worries about inflation, the vix spiked.
let's talk more about volatility in these otherwise calm markets with melissa brown, director of applied research at axioma the volatility spike in yesterday's trading session, is that the volatility we want? we have been hearing from traders much of this year that we don't have enough volatility that keeps the markets going but it's not that kind of volatility we want >> i don't think the volatility we want is related to markets going down and going down a lot over a short period of time. that's not the volatility we want certainly it has been an extremely calm period of time. >> what do you think would kick start volatility once again? apart from the bad news coming out of north korea, questions about trump's agenda would it be tapering maybe would it be the continued tightening that will reestablish the sense of normality >> certainly tapering may be
more agreement among central banks about what to do maybe something actually getting done in the u.s. or other economies. those kinds of things could bring volatility back in a better way than just a market falling apart. so far we have not seen that happening. >> why was market volatility so low in the first place is it something in the market structure we have to come to accept is it simply the fact that monetary policy was still, you know, essentially rising or lifting all boats? >> i think actually it's the result of the kind of anti-globalization that has been going on around the world. if you look at individual countries, they're moving much more based on their own economies and what's going on in their own political systems rather than as a fully global movement in markets. you see in the u.s. the impact
of trump's mpolicies would be different on different parts of the economy. if you have one stock going down, another stock going down, together they'll track low volatility you find out volatility is low within the board, but in different sectors it is different. so that gives hope to sector pickers. >> two things are good for stock pickers or sector pickers. one is that we are seeing in some sectors a lot more volatility, not only more than the market but more than we've seen historically. also correlations are low, which means -- among stocks, which means if you get the stock picking right, there's more bang for your buck. >> there isn't just low volatility stocks. i looked at volatility in the bond market. that's also at a record low for the month of august. at this point, if we learn from
history, we should be wary of adding more risk do you think much of the investor base out there looks at history or because risk is so low they'll add on more risk >> my concern is because of complacency they will add risk perhaps at the wrong time. we don't see anything coming that might cause a huge risk spike, but it certainly has happened in the past off of very low volatility >> you don't necessarily foresee a correction in the near future. that could come at any point, not necessarily in the next couple weeks >> we don't -- typically you do see volatility start to rise before you see the big correction we have not seen that volatility spike yet. >> where would the vix have to go where would asset classes have to go? >> we don't -- vix is a good barometer of what the market is thinking today but it doesn't
tell you which components of risk are moving. so we think a more in depth risk model is really what you want to be looking at. so you can see, is it becaus currency risk changing or bond risk that's where we would look we have not seen that in our risk models. >> all right thank you very much for those insights melissa brown, director of applied research at axioma the dutch oil and chemical storage firm warned that full year core profit is bound to take a dip as well >> with respect to the outlook for 2017 we have to take into account the enormous fluctuations on the currency markets with strong results to the u.s. dollar. so we expect a small decline in the second half of the year,
that together compared to the occupancy rates, we came to the conclusion we will not exceed 2016, but instead it will be lower, somewhere between 5% and 10%. >> coming up on the show, a robot as a doctor? it's not as distant of a prospect as you might think? we'll talk ai and healthcare after this short break chances are, the last time you got a home loan, you got robbed. i know-- i got a loan 20 years ago, and i got robbed. that's why i started lendingtree-- the only place you can compare up to 5 real offers side by side, for free. it's like shopping for hotels online, but our average customer can save twenty thousand dollars. at lendingtree, you know you're getting the best deal. so take the power back and come to lendingtree.com, because at lendingtree when banks compete, you win.
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host an expo many say the three-month event is being used to showcase the government's efforts to diversify the economy away from oil and gas money. this expo is a showcase of national identity, with every country bringing a perspective on where future energy will come from we're not just showing bits of energy technology. we're saying let's step back from this. the actions we take will directly impact our world and in terms of the solutions >> we try to bring russian north this summer, and tried to make russian arctic stage where all the exhibits are installed in the pavilion of russia >> the buildings on this massive 429 acre site are just an
extension of the kazakhstan capital skyline. astana is the youngest city after being established in 1997. since then its population and construction projects have boomed overall kazakhstan's economic growth has slowed, mainly held back by the slumping global oil prices but the government has acted monetary policy remained accommodative, fiscal consolidation has been delayed, and economic short measush supp have been extended add to that the expo itself. 3 million people are expected to come through the gates many, like me, will be first-time visitors to the country. what they'll find is an event designed to show the world that kazakhstan is more than oil and gas. for more on this tune in to
"on assignment" tonight at 23:30 cet. it will be shown multiple times over the weekend. i want to bring you the latest on the developments in barcelona related to the terrorist attack yesterday reuters is reporting that spanish authorities believe there may have been eight people involved in a cell which carried out an attack in barcelona yesterday. and that the group planned to use gas canisters, a source with the knowledge of the investigation told reuters seems as though eight people were involved in the terror cell now on to our theme, rise of the robots we spent the last five days exploring the breakthroughs and controversies surrounding artificial intelligence. let's look at ai in healthcare
and law. joining me is jackie hunter and ben algrove. thank you so much to both of you for joining me jackie, let's kick things off with you we've seen so much buzz and so much excitement around smartphone-based healthcare apps that use ai. how is your company different? how do you use ai? >> i think ai will have a huge impact on healthcare one of the big issues is the vast amount of data generated in the biomedical space every day our ability to mine that data have not increased at the same rate there's a new scientific paper every 30 seconds what we're trying to do at benevolent is tackle this data to effect the root causes of innovation in the pharmaceutical industry that lack of ef ficacy an costs.
it costs over $30 billion to bring a new drug to the market less than 10% actually make it to the market. so at benevolent we are using our ai capabilities to mine that information and pick the right protein in the body that is critically involved in a disease, and then manipulate that protein so we can effect the course of the disease. and we have had some promising data in a very serious disease secondly we're attacking the costs of drug december kovry by u discovery by developing new molecules so we'll make fewer drugs but they'll be better. >> why can an ai program do that better than a number of researchers who have done this for many years and are trained in this? >> we still use the augmented insight of those researchers, but what we're allowing them to
do is look at all the evidence in an unbiased way, bringing it together and present them with the information they really need and allows them to focus expertise in more relevant areas. >> ben, let me bring you in on this from a legal perspective, i don't know if you got views, concerns about whether this goes up against any legal issues. do you think this is a totally kosher way of dealing with sort of data, with drug data? >> i think it is tschlis the reality is nobody knows all the uses that will be thrown up. from a legal perspective, you're looking at ensuring that the technologies are properly applied. i think there are risks in under and overregulating in the sector i think it's beneficial to look at the power that some
technology can bring to deliver some insights that were talked about. >> at what point would you become concerned and say ai is transgressing some of the legal boundaries that we have in place? do you see any warning signs or red flags out there? >> not specifically when it comes to this idea and this company, but healthcare and the application of ai in general >> i think there's a real conversation to be had around when it's appropriate to use ai and what type of ai should be used healthcare is a core part of the thought process that goes through the output we are all looking for better results. but if you're talking about somebody's healthcare, a patient's care, transparency i think is important if you contrast that with driverless cars there we want to see a system that works better and something like a compulsory insurance system is more important than the transparency
we see in the healthcare sector. >> jackie, i would assume your b business is cash, r&d expensive. we saw a big acquisition a couple days ago, a healthcare start up being bought, synosis aetna working with apple on a couple things in the healthcare space. do you feel that as a smaller startup a smaller business you can make a difference here do you think the main thrust will be done by the big giants >> i think we have tremendous advantages as a smaller company. we're trying to disrupt the r&d process. that means we have to have people who know what they're doing and are willing to work closely with the data analytics, the algorithms generated to apply ai in this space so we have a real critical mass here we're doing it in a focused way.
i think it's going to be hard for large corporations to actually effect the cultural change as well as the organizational change to really make a difference. >> very quickly. ben, do you think lawyers will be replaced? >> no, i don't i think lawyers will be better lawyers. >> with the help of ai >> correct >> thank you very much for that. jackie hunter and ben algrove. u.s. futures looking mixed at this early stage the s&p 500 looks like it could eke out a small gain the dow jones seen off by 16 points european travel stocks are under pressure today given the events in barcelona yesterday that's it for today's show i'm carolin roth "worldwide exchange" is up next. you know what's awesome?
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breaking new now, a massive manhunt underway in spain after a terrorist drove a van into a crowd of tourists killing 13 at least five suspected terrorists a dead following a separate incident south of barcelona. we're live in spain with the latest on this unfolding story. risk off stocks posting their second worst day of the year as terrorism fears and concerns out of washington weigh on investors. we're all over the early market action. and president trump scraps plans for an infra